The Central Bank of the UAE has in principle approved the licensing of AED stablecoins pegged to fiat currency

ChainCatcher news, the Central Bank of the UAE (CBUAE) has in principle approved the AED stablecoin license, making the company the first fully regulated stablecoin issuer in the region pegged to the fiat dirham.

This latest development falls under the newly established regulatory framework for payment token services by CBUAE and aligns with the UAE government's 2025 digital government strategy. Recently, the central bank released a licensing framework that prohibits the use of cryptocurrencies for payments, unless it involves licensed tokens pegged to the dirham.